Proposed joint oil exploration at WPS seen hitting snag

By MYRNA M. VELASCO

The targeted joint oil and gas exploration at the diplomatically-contested West Philippine Sea could end up to be a "dead proposition, that is, if the country has to take its cue from the recent decision of the Supreme Court declaring the "unconstitutionality" of the joint marine seismic undertaking (JMSU) forged with foreign entity-partners during the Arroyo administration.

With the hypersensitive legal tenets of the talks that shall be carried out with the Chinese government, Senate Committee on Energy Vice Chairman Sherwin T. Gatchalian sounded off that “when you go to the nitty gritty of things, especially the governing law that should prevail, I think we will hit a snag with that issue.”

The JMSU refers to the March 2005 deal entered into by state-run Philippine National Oil Company (PNOC) with regional peers PetroVietnam and China National Offshore Oil Corporation (CNOOC) for a three-year collaborative search for potential oil discovery in the disputed South China Sea, but the seismic survey domain straddled the exclusive economic zone (EEZ) of the Philippines.

Back then, the agreed pre-exploration survey prescribes the collection, processing and the need to analyze seismic data within the 142,886 square kilometers covered by the JMSU. The partner-firms shared the $20 million to $25 million investment cost for the activity.

Pass forward to this day when the Philippine-China talks for joint exploration and production (E&P) ventures at the disputed territory are being rekindled, the lawmaker asserted, “Personally, I'm not so optimistic that we can move forward with this joint exploration. It's good that we are talking. It's good that we are open to it. But I think that the best case here or the best evidence will be what was discussed during the last administration.”

Gatchalian is referring to the "zero progress" on the same sphere of negotiations with China that was pursued during the Duterte administration.

The solon shared the view that the West Philippine Sea is endowed with oil and gas resources that the country could lean on for its lofty energy security goals, but the major drawback has been the lack of traction despite persistent talks with China on this matter.

“The West Philippine Sea is the most prolific when it comes to oil and gas and it's to our interest to be energy secure. Therefore, we should explore the potential of the West Philippine Sea. However, we're also looking for ways to work with China,” he stressed.

In his assessment, the recent verdict of the Supreme Court is a harbinger of things to come on the proffered joint oil and gas exploration at the West Philippine Sea – primarily the tricky legal and Constitutional aspect that shall be laid on the table for any continued negotiations between the two countries.

“The overarching message of the Supreme Court in (its) decision is that our Constitution should prevail. Our Constitution should be the governing document, and that is a minimum standard that any activity - whether it's a joint exploration, joint venture or production - it should be our Constitution that should be governing the activity,” Gatchalian emphasized.